Should I Set Up A Right To Manage Company?

by Tim Bishop on October 29, 2013

  • SumoMe

When it comes to leasehold, freehold, lease extension, enfranchisement and other areas of residential property law, everything can seem incredibly complicated and overwhelming. If you live in a block of flats or apartments, you may have heard about your Right To Manage, but what is it? And should you be considering it?

What Is A Right To Manage Company?

Right To Manage (RTM) refers to your right to take over the management of a block of flats if you believe that the current manager is not carrying out their duties properly (the other option is to request the Leasehold Valuation Tribunal – the LVT – to appoint a new manager, but for this to happen you need to actually prove bad management). If you decide to exercise your Right To Manage, you’ll need at least half of the leaseholders in the block of flats to agree to form a RTM company – essentially, a group that will take over the management responsibilities and make all of the decisions that your current landlord does now.

Reasons To Exercise the RTM

Compared to the option of going to the LVT, if you decide to set up a RTM company, you don’t have to prove bad management on the part of the current landlord. One big advantage is that you don’t need every single leaseholder in the building to participate – if some don’t want to be involved, it won’t stop you from still setting up the company; only half need to be interested. Of course, where there are advantages, there are also disadvantages, one of which can be seen as good or bad depending on the circumstances: the RTM company will need to have at least one director. It can be difficult for some people to make this decision, but there are options; it can either be one of the leaseholders or an external third party manager. Just remember that if you put yourself up for director, you’ll be in control of what happens in the building, but this also comes with a lot of responsibility and it will take up a lot of your spare time. Control is, however, the reason you started looking at your Right To Manage in the first place, so many people will see this positive as far outweighing the negatives.

What To Do Next

If you’ve decided that you want to set exercise the right to manage your block and set an RTM company, the next step is to check that you actually qualify for RTM – there are many terms and conditions, something which a specialist solicitor will be able to help you with if you aren’t sure if you or your building qualifies. Once your solicitor has helped you set up your company and appointed a director, the current landlord will transfer all responsibilities concerning the management to the company. Again, a qualified solicitor with experience in this particular area of law is essential to give you all the help and legal advice you need.

Tim Bishop senior partner of Bonallack and Bishop – a property law firm with specialist right to manage solicitors. For more information about exercising your right to manage, visit their website at or call them on 01722 422300.

Tim Bishop
Having qualified as a Solicitor in 1986, Tim Bishop is a legal entrepreneur who owns law firm Bonallack & Bishop. Find out why you should choose the commercial solicitors at Bonallack & Bishop: Visit
Tim Bishop

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